Who Qualifies for Overtime?

Overtime is regulated on a federal level by the United States Department of Labor. Under their supervision, the Fair Labor Standards Act was drafted to guide overtime pay and define who qualifies for FLSA overtime. This act states that for covered, nonexempt employees, overtime pay must be at least one and one-half times an employee's regular rate of pay after 40 hours of work in a workweek. Some exceptions to this apply under special circumstances. Besides this act, 18 states have their own labor overtime laws. When this occurs, the higher standard of overtime law applies. Also, some companies include mandatory overtime as part of an employee's work schedule

Who Is Covered to Receive Overtime?

The FLSA covers all employees of enterprises that have workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person.

A covered enterprise must entail the following:

• Produces an annual gross volume of sales made or business of more than $500,000
• Engages in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or a profit or non-profit institution of higher education
• Performs the activity of a public agency

Any enterprise that was covered by FLSA on March 31, 1990, and that ceased to be covered because of the revised $500,000 test, continues to be subject to the overtime pay.

Are Non-Covered Employees of FLSA Who Are Still Eligible for Overtime?

Certain employees of firms that are not covered enterprises under FLSA still may be subject to its overtime pay protection. This can occur if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely-related process or occupation directly essential to such production. Such employees include those who: work in communications or transportation, regularly use the mails, telephones, or telegraph for interstate communication, or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross State lines in the course of employment; or work for independent employers who contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in the production of goods for interstate commerce.

Additionally, domestic service workers such as day workers, housekeepers, chauffeurs, cooks, full-time babysitters are covered if:

• Their cash wages from one employer in calendar year 2007 are at least $1,500 (this calendar year threshold is adjusted by the Social Security Administration each year); or
• They work a total of more than 8 hours a week for one or more employers.

Legal Help

Employers often take advantage of the many different aspects of the FLSA relating to overtime wages, despite employees having rights that an employer cannot take away. If you feel this pertains to your situation, seek legal help immediately.

Conclusion

If you are unsure about your overtime rights, consulting an employment law attorney will give you a definitive answer regarding your legal rights and options today.